Dell has bold claims about Perot tie up?

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Dell has made some brave claims about the opportunity for its services business following its acquisition of Perot Systems.

I have listed the claims with some comments from people I have spoken to. Please tell me what you think.

Dell claims:

"1 - The IT industry remains fragmented with only 4 companies offering a set of integrated service offerings (IBM, HP, Fujitsu, and now Dell).
 
2 - Dell is powerfully positioned as one of the 10 largest IT services providers.
Industry comment: "In terms of pure services turnover maybe number 15-20 worldwide."

3 - From a customer point of view, we know IT budgets are pressured, and customers want technology that offers best value solutions.

4 -   We want to help organisations innovate and focus on strategic objectives while spending less on routine IT management."

This is why Dell says it bought Perot:

"1 -   Dell became an IT leader through highly efficient built-to-order solutions.

2 - Now, we want to do the same thing in services, reducing complexity and driving out inefficiencies across the service and support lifecycle.

3 -    We believe that the new Dell Services (Dell's legacy services organisation combined with Perot Systems - which we acquired last November) is big enough to be credible, yet nimble enough to lead a transformation in the services industry."

This is what tell says about the merged services organisation:

"1 - We are a $7.5bn global services organisation with more than 42,000 employees.

2 - The organisation generates approximately three-quarters of its revenue from infrastructure and related support services 18% from applications and consulting services, and 7% from business process services.
 
3 - We serve the entire spectrum of potential clients, from large organisations to consumers.

4 - We see the combination of our solutions and teams creating enhanced growth opportunities through cross-selling opportunities as well as being presented the opportunity to participate in a broader range of sales activities

5 - This is a very exciting time and we're stronger together

6 - We can fill out capabilities that neither company owned by itself

7 - Qualify for more RFPs and win more deals
 
8 - Sell more products and services at existing accounts."

This is what Dell claims to do?

"1 - In addition to scale, the components that now form Dell Services have a comprehensive range of complementary strengths ... and a consistent history of creating an award-winning customer experience.

2 -   Together, the companies support nearly 15 million systems and manage over two million seats

3 - Consistently, Dell Perot Systems has ranked number one as healthcare IT contractor and number one by KLAS for Clinical Implementation Services

4 - The combination of solutions and teams from each company creates growth opportunities through cross-selling, but even more significantly presents the opportunity to participate in a broader range of sales activities.

5 -  Dell Services offer best-in-class suite of intelligent, end-to-end services and business solutions to reduce IT complexity and lower costs

6 - From our knowledge of industry requirements, we then tailor industry-specific solutions that solve business problems and deliver the best value for the resources invested.

7 - The strength of our combined business model rests in several areas:

 -  Intense customer focus - committed to top customer success
 -  Domain knowledge - Industry expertise in healthcare, government, and large enterprise is a competitive advantage that allows us to add long-term value through industry-focused solutions  
 - Breadth of services - Integrated technologies, IT and business services, and industry-specific consulting are combined to create services that transform organizations
 - Global delivery model - Modular services delivery put customers in control, allowing them to select only what they need, which means lower cost for customers
-   Recurring revenue - Over $13 billion in annuity-like revenues."
 
One industry commentator asked:  "What is the definition of 'integrated services.' CSC, Atos, Logica, T-Systems, Siemens and many others offer these services."

Is Dell underestimating the challenge?

What do you think?

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This page contains a single entry by Karl Flinders published on January 25, 2010 2:25 PM.

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